PERCEPTON AND BEHAVIOR OF INVESTOR TOWARDS INITIAL PUBLIC OFFERING (IPO) IN NEPAL

Abstract

The aim of this research was to assess the perception that investors have towards IPOs in Nepal. The study was conducted on a sample of 400 people from Kathmandu, who invest in IPOs directly in Nepal. The research employed survey research, descriptive research, and causal comparative research to meet the objectives of the study. Primary data was collected by using a structured questionnaire that was administered to different investors in Nepal. On gender opinion differences, the T-test was used whereas correlation matrix was used to establish the relationship between the investors response and the IPOs. On the effect of various factors on the investment decision a regression analysis was conducted. The study also established that several factors that influence the investment decisions of investors in IPOs in Nepal are herd behavior, market return, company performance, company sectors, and market information. Notably, the study identified noticeable disparities in investments between the male and female investors. Moreover, a positive correlation between variables such as Herd behavior, Market Return, Company performance, Company sectors and Market information and Investment decisions was realized in the research study. More specifically, it revealed the extent of the impact of herd behavior, company performance, market information on investors’ decision to invest in IPOs. In conclusion, this study enriches the specific field of research that addresses investor behavior in IPOs in Nepal, and the existing research can be useful for further research conducted not only within the same industrial district but also for the comparison with other countries, which will extend the existing knowledge base concerning the investment decisionmaking process. Keywords: Initial Public Offering (IPO), Herd Behavior, Market Return, Company Performance, Company Sector, Market Information, Investment Decision